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Donald Trump for Bankruptcy 2024 [1]

['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.']

Date: 2023-10-02  

The headlines scream that this fraud trial will expose what Donald Trump is really worth. Also, that he may lose control of Trump Tower.

But, is that the real danger? Think about this: the judge revoked the business licenses for Trump's LLCs, taking away his ability to control his own businesses. If New York wins the suit, then he also has to pay $250 million dollars.

This has several major consequences:

1. He is likely already in technical default on his loans for multiple reasons. First, continuing to run his LLCs is likely a condition of the loans. Second, he entered the loans through fraud. Most of his creditors have the right to demand repayment of loans immediately.

2. He has to raise $250 million in cash. If he doesn't have it on hand, he has to sell something. Most of his property is collateral in other debt and subject to various contracts, making it tedious to unwind his business without creating more complications.

3. Lots of evidence will come out at court that could be used by his other creditors or business partners to crush him in other civil litigation.

4. Once the house of cards starts to collapse, all his creditors will scramble for as much repayment as he can get.

Is it just me, or does this court case have the potential to lead to bankruptcy, possibly before the primaries are even finished? Of course, there are copious chances for delays, appeals victories, or shenanigans. But, this fraud trial may have yuge ramifications.

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[1] Url: https://www.dailykos.com/stories/2023/10/2/2196835/-Donald-Trump-for-Bankruptcy-2024

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